He mentioned this cost of cess made the jewelry exports unviable and uneconomical, because the cess shouldn’t be a part of import obligation. “Jewelleries are sold on international pricing of gold, and this additional cess hampers the export and growth of the industry,” Shah added.
On February 17, the finance ministry had issued the notification of the amendments made to the Finance Bill 2021 with regards to the AIDC exemption on gold and silver bars and dore for exporters. However, the notification maintained that the gold and silver bars and dore imported for home use will entice AIDC. In the Finance Bill, 2021, AIDC of two.5 per cent was levied on import of gold/silver bars and dore.
The authorities’s current choices, together with the discount of import obligation on treasured metals like gold and silver to 7.5 per cent from 12.5 per cent and the amendments made on the gold monetisation scheme (GMS), may even boost the trade, GJEPC mentioned within the assertion.
These amendments will encourage home gold to come into the system by empowering banks, giant jewelry shops as BIS-certified gold assortment centres, it added.